Gold, Silver Jump; US Mint Coins Gain

Gold prices surged to start the new trading month Monday with safe-haven demand up as U.S. stocks dived and the U.S. dollar weakened.

Gold for April delivery bounced $20.10, or 1.6%, to $1,259.90 an ounce on the Comex division of the New York Mercantile Exchange. The precious metal traded from a low of $1,240.40 to a high of $1,266.10.

"U.S. gold futures rose sharply Monday as the equity market and dollar sagged after a weak manufacturing survey from the Institute for Supply Management," Allen Sykora, a senior analyst at Kitco Inc, said in a note.

The Institute for Supply Management’s factory index decreased to 51.3 in January from a recently revised 56.5 in December. An index reading above 50 indicates expansion but the latest mark is the lowest level since May 2013 and was well below expectations.